Today, the New York Fed announced that the Primary and Secondary Market Corporate Credit Facilities will begin making purchases soon, starting with ETF’s. The Fed expects to operationalize the Secondary Facility first, followed “shortly after” by the Primary Market Facility.
The BDA recently wrote in favor of the Feds Secondary Market Corporate Credit Facility. The recommendations can be viewed here.
The central bank has reserved the right to buy exchange traded funds that are made up of bonds below investment-grade, but the majority of its ETF purchases are expected be investment-grade bonds.
The updated FAQ’s can be viewed here.
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